12 August 2019 – Didi Chuxing Spins Off Autonomous Driving Division

Big Ones

SoftBank Vision Fund recently announced that it has secured memoranda of understanding for $108bn in capital for its second investment vehicle, and SoftBank CEO Masayoshi Son has now said it will begin investing as soon as next month.

Didi Chuxing is spinning off its autonomous driving division and will likely seek funding at a multi-billion-dollar valuation. The ride hailing service has raised more than $18bn in debt and equity financing but is keen to gain external investors for a part of the company that may prove invaluable in future, but which is a cash drain right now.

Pharmaceutical and chemical producer Bayer acquired US-based stem cell treatment developer and portfolio company BlueRock Therapeutics in a deal that could value it at up to $1bn. The terms of the transaction involve Bayer paying a total of up to $600m to acquire the shares in BlueRock it did not already own, investing $240m upfront that will be followed by preclinical and clinical milestone payments that could reach $360m.

In this week’s GCV and GUV crossover news, the biggest deal was a $70m series B round for HawkEye 360, a US-based radio-frequency data satellite developer based on Virginia Tech research. The round included commercialisation firm Allied Minds (Hawkeye’s parent company) as well as aerospace manufacturer Airbus and mapping software developer Esri.

Deals

FlixMobility, a Germany-based travel services provider backed by carmaker Daimler, has added a “substantial” amount of funding to its series F round, which attracted $561m last month. The additional funding, seemingly worth hundreds of millions of dollars, was supplied by Baillie Gifford, Luxor Capital, Odyssey 44 and certain funds managed by BlackRock.

Tencent invested $350m in Kuaishou in early 2017 at a reported $2.5bn valuation, and as the short-form video sector has grown as a whole, the company has expanded its presence to the point it now has some 200 million daily active users.

E-commerce payment services provider Klarna has raised $460m from investors including new strategic partner Commonwealth Bank of Australia at a $5.5bn post-money valuation.

Existing backer SoftBank has invested a further $200m in endpoint cybersecurity software provider Cybereason together with several undisclosed affiliates, at a reported $900m valuation.

Online business finance marketplace C2FO has pulled in $200m in a round led by SoftBank Vision Fund that, according to Bloomberg, also featured existing backer Allianz X. The round roughly doubled the company’s overall funding to about $400m and it will put the money toward boosting international growth.

Wickedride Adventure Services, the owner of India-based electric vehicle rental service Bounce backed by mobile chipmaker Qualcomm, is raising $200m in fresh funding. Bounce has already received an initial $120m, people familiar with the matter told TechCircle.

Automotive e-commerce marketplace CarDekho has added $19m from investors including Emtek subsidiary Kreatif Media Karya to a series C round that has reached $129m. CapitalG, Dentsu, Bennett, Coleman & Co and Axis Bank contributed to the round’s earlier tranches, and the funding was reportedly secured at a $500m valuation.

Keyless lock technology provider Latch has also beefed up its latest round, closing a series B at $126m. RxR Realty, Tishman Speyer and the Berman Enterprises-backed Camber Creek all participated in the round, which was pumped up with a $56m second tranche.

Rakuten has increased its stake in cancer therapy developer Rakuten Medical to more than 22% with a $100m investment made in the shape of a series C-1 round. The e-commerce firm had joined SBI Group for the $284m series C the company closed in December, back when it was still known as Rakuten Aspyrian (and a while after it was founded as Aspyrian Therapeutics).

Rakuten Ventures has contributed to a $93.9m round for Japanese digital marketing software provider From Scratch that also featured Link and Motivation and Japan Post Investment. The unit has been an investor in From Scratch since its 2017 series C round, and the company’s other backers include Dentsu Digital Holdings and Itochu Technology Ventures.

Ibotta, the creator of a rewards app that gives consumers money back on selected purchases, has secured an undisclosed amount in a series D round that hiked its valuation to $1bn. Koch Disruptive Technologies led the round, which followed about $95m of earlier funding, and which will support an expansion of Ibotta’s Denver headquarters as it prepares to increase recruitment.

Funds

American Family Ventures, the corporate venture capital arm of US-based insurance firm American Family, has raised more than $162m for a venture capital fund, according to a securities filing. The fund, dubbed AmFam VC Fund III LP, has taken in $162.5m from four investors and has set a $200m target for its close.

Exits

Delivery services provider Glovo has raised at least $340m in funding from investors including AmRest, Drake, Delivery Hero and Rakuten, and was reportedly valued at $950m in its last round. It has also begun discussions to raise money from – guess who – SoftBank, and is in talks with Uber and Deliveroo who have approached the company over a possible acquisition.

And here’s an exit… from an exit. Rapt Therapeutics, a US-based small molecule drug developer backed by internet and technology conglomerate Alphabet and pharmaceutical firm Celgene, has postponed its initial public offering without offering a new timeline. The company set its price range at $14 to $16 two weeks ago and hoped to issue 5 million shares on the Nasdaq Global Market to raise between $70m and $80m. Rapt is working on small molecule drugs that it hopes will boost a patient’s immune response to cancer and inflammatory conditions.


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0

24 June 2019 – Slack Goes Public with $19.5bn Valuation

The Big Ones

Wealth management platform Paytm Money’s only funding so far has been a $10m investment by parent company One97 Communications, but it is said to be preparing a round that could be up to $1.2bn in size that will include SoftBank and Ant Financial.

Slack finally went public on Thursday in a direct listing that so far qualifies as one of the year’s notable successes. Its shares had been allocated a $26 guidance price by the New York Stock Exchange but they finished at $38.62 on its first day of trading giving the messaging platform a valuation of about $19.5bn.

Cathay Capital’s Cathay Innovation fund has raised $358m for the first close of its second fund, whose LPs include Valeo, SEB, Michelin, ADP, Accor, BioMérieux, Dassault, JCDecaux, Kering and Pernod Ricard.

On GUV, Imcyse, a Belgium-based immunotherapy developer spun out of KU Leuven, raised €28m ($31.4m) in funding from investors including the university. Life Sciences Partners led the round, which also included Belgian state-owned investment firm SFPI-FPIM, Wallonia government investment firm SRIW, growth capital firm Epimède, family office Biogenosis and private equity firm Noshaq.

Deals

Autonomous driving technology developer Aurora Innovation has boosted its series B round to more than $600m, pulling in funding from investors including Hyundai and subsidiary Kia Motors.

SoftBank Vision Fund has led a $205m round for Collective Health, the developer of a software platform that helps businesses manage their employee health plans more efficiently.

Vision Fund is reportedly also in talks with Indian fitness and wellness services provider CureFit over an investment of $200m to $350m that would value it at more than $1bn.

Zhenkunhang, the operator of an online marketplace for industrial equipment and procurement services, has captured $160m in a series D round led by Tencent.

Canada Pension Plan Investment Board is set to pay $150m for an 8% stake in logistics services provider Delhivery through a secondary transaction. The company has raised nearly $670m in funding from investors including SoftBank Vision Fund, Fosun and Times Internet.

NTT-backed data management software producer Druva has already reached that $1bn valuation, in a $130m round led by Viking Global Investors.

Rapt Therapeutics has taken its series C round from $60m to $97m, raising the additional capital from the participants in the first tranche, which include GV.

Digital payment technology provider RazorPay is now valued at $450m, after securing $75.4m in its series C round. The India-based company has reportedly now received a total of $107m in funding and its earlier backers include Mastercard and GMO Venture Partner.

Viela Bio, an autoimmune and inflammatory disease drug developer founded by AstraZeneca, has closed a $75m series B round led by investment firm HBM Healthcare Investments that boosted its overall funding to more than $300m.

Funds

Northern Accelerator, a UK-based commercialisation grouping of four universities in northeast England, is seeking to raise £100m ($125m) for a venture fund to back spinouts and startups. Northern Accelerator will select a management partner for the new fund, dubbed North East University Investment Fund, in November 2019 following a formal tender process and Q&A presentations in London and Newcastle.

PreSeed Ventures, a venture firm owned by Technical University of Denmark (DTU), is targeting DKr350m ($52.5m) for a new fund focused on early-stage tech businesses.

Exits

Stoke Therapeutics is developing treatments for genetic diseases, and has gone public having priced its initial public offering above its range while also increasing the number of shares it is issuing.

Gene therapy developer Prevail Therapeutics has secured $125m in an IPO priced in the middle of its range. The AbbVie Ventures-backed startup had raised $129m since it was founded in 2017, and it will use the proceeds to advance treatments for neurodegenerative diseases such as Parkinson’s disease, neuronopathic Gaucher disease and frontotemporal dementia.

Naspers subsidiary PayU has agreed to buy Iyzico, a Turkish digital payment platform that counts Beenos as an investor, for $165m.


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0